Why would a timber company want to buy a new computer system and what could justify the necessary expense? Our answer to that question may help others in similar situations.

Over the years we have moved from a system of order processing and accounting without the use of computers, to a halfway stage partly computerised, and finally to our current fully computerised system. At each stage we’ve learnt a lot of lessons regarding what works well for our company working within the timber trade. We have also reached a point where our current computer system no longer meets our demands. The key requirements of our new system are that it meets all existing functions but that it also provides extra features that help us meet our customers needs more efficiently.

Probably the most important single benefit of an effective computer system is that it gives you more meaningful information on market and customer trading patterns. That can actually help you steer your business forward. In helping you monitor their buying patterns, it will enable you to understand customers’ needs and manage your relationships with them.

From our point of view these capabilities are essential in any computer system:

  • sales order processing;

  • purchase order processing;

  • stock management;

  • management/customer relationship information;

  • accounting;

  • potential for integration with our internet presence; eg for e-mailing quotations.

    To a degree, our existing systems deal with the above, but we now expect more useful information back from our system and most importantly “good support” from the supplier.

    Invaluable support

    The value of support cannot be over emphasised. Initially we did not see it as one of the critical issues, but now we think differently. Good support can save time and money, while poor support costs – and leads to hair loss for directors!

    When you are moving from one computer system to another, as we are now, this is an even more vital area. Switching from manual to computer-based operations you can run your two systems in tandem and effectively double check. Moving from one computer system to another you arrive at that given moment when you have to switch one off and the other on. Support at this point is absolutely essential.

    In our current selection process we started with a ‘general awareness’ of four different systems, took a closer look at a couple and are now down to the ‘shortlist’ of one.

    We are currently putting our preferred system through closer evaluation. This has included contacting a timber company using the system. They gave us a number of sensible observations that really only an existing user could provide.

    Of course, like any business, we get frequent approaches from general software companies offering us their latest systems which they claim they can adapt to our needs. But we feel we’d effectively end up being their guinea pig in the timber industry. There are software suppliers who specialise in and know about the timber trade and in our view it makes most sense to go with them.

    The cost

    The cost of a new system depends on the number of users in your company per terminal. We classify ourselves as a small- to medium-sized business in the five to ten users per terminal category, so we’d be looking to spend in the region of £20,000. There are now a number of systems available at around this price specifically tailored to our market. You may be tempted by those non-timber specific solutions in the £8,000-10,000 price bracket, but I think you would be opening up a hornets’ nest.

    In a small- to medium-sized business, one person will probably undertake most responsibility in terms of the initial evaluation. But once you’re serious about a system you should invite the supplier in to give their presentation to the key directors and users. We found it very useful too to invite our auditors in for this to ensure the system produces the sort of information they could easily understand and use. If you get a system that produces awful output that your accountants take forever to unscramble you can get in a real mess – and your accountants will charge you more!

    Here is our check list when looking at new computer systems (which obviously can be added to):

  • Is the cost of the system within budget?

  • Do the system suppliers have a proven track record within the timber trade?

  • Does the trading part of the software fully integrate with the accounts part?

  • Does the company have the necessary staff to offer excellent support?

  • Is full training provided?

  • Will management and customer information be truly useful?

  • Is the accounting software up to the necessary standard?

  • Can existing companies that use the system be contacted for their views of working with the system day to day?

  • Is there an ongoing programme for upgrading the software?

    In short, we believe that a computer is there to serve its user, not the other way round.